Parker Reports Fiscal 2026 Third Quarter Results

Rhea-AI Summary

Parker (NYSE: PH) reported fiscal 2026 third-quarter results with record sales of $5.5 billion (up 11%) and organic sales +6.5%. Adjusted EPS rose 18% to a record $8.17 and year-to-date operating cash flow was a record $2.6 billion. Orders were +9% and backlog reached $12.5 billion. The company raised fiscal 2026 guidance to reported sales +7% and expects adjusted EPS $31.20.

Reported net income and GAAP EPS declined versus prior year due to a prior discrete tax benefit; the company increased its quarterly dividend and repurchased $275 million of stock.

Positive

• Record sales of $5.5 billion (up 11% year-over-year)
• Adjusted EPS +18% to a record $8.17
• Year-to-date operating cash flow record of $2.6 billion
• Backlog increased to a record $12.5 billion
• Orders growth of +9% across reported businesses

Negative

• Reported net income declined 6% to $904 million
• GAAP diluted EPS decreased 4% to $7.06
• Selling, general & administrative expenses increased by ~12.7% ($785M to $884M)
• Income tax expense rose significantly to $215 million from $33 million year-over-year

News Market Reaction – PH

-4.02%

4 alerts

-4.02% News Effect

-$5.01B Valuation Impact

$119.59B Market Cap

0.0x Rel. Volume

On the day this news was published, PH declined 4.02%, reflecting a moderate negative market reaction. Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $5.01B from the company's valuation, bringing the market cap to $119.59B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Quarterly sales: $5.5 billion Organic sales growth: 6.5% Adjusted segment margin: 26.7% +5 more

8 metrics

Quarterly sales $5.5 billion Fiscal 2026 Q3 net sales, up 11% year over year

Organic sales growth 6.5% Fiscal 2026 Q3 organic sales growth vs prior-year quarter

Adjusted segment margin 26.7% Fiscal 2026 Q3 adjusted segment operating margin

Adjusted net income $1.0 billion Fiscal 2026 Q3 adjusted net income, up 16% year over year

Adjusted EPS $8.17 Fiscal 2026 Q3 adjusted EPS, up 18% and a record

YTD operating cash flow $2.6 billion Year-to-date cash flow from operations, 16.7% of sales

Order growth 9% Parker total order rates for quarter ended March 31, 2026

EPS guidance (adjusted) $31.20 Fiscal 2026 adjusted EPS outlook in updated guidance

Market Reality Check

Price: $909.42 Vol: Volume 727,666 vs 535,136...

normal vol

$909.42 Last Close

Volume Volume 727,666 vs 535,136 20-day average (relative volume 1.36x) ahead of earnings release. normal

Technical Price $947.50 trades above 200-day MA $850.84 and 8.45% below 52-week high $1,034.96.

Peers on Argus

PH was down 1.53% pre-earnings while key peers EMR (-1.6%), ITW (-1.0%), ETN (-1...

PH was down 1.53% pre-earnings while key peers EMR (-1.6%), ITW (-1.0%), ETN (-1.51%), GEV (-2.63%) and AME (-0.95%) also traded lower, suggesting broader industrial softness, though the momentum scanner did not flag a coordinated sector move.

Common Catalyst Peer AME also reported earnings and an acquisition, pointing to an active industrial earnings and M&A news cycle.

Historical Context

5 past events · Latest: Apr 23 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Apr 23	Dividend increase	Positive	+0.1%	Raised quarterly dividend 11% to $2.00, extending 70-year increase streak.
Apr 14	Earnings date notice	Neutral	-2.2%	Announced Apr 30 fiscal Q3 earnings release and conference call schedule.
Mar 12	Conference presentation	Neutral	-1.4%	Planned presentation at Bank of America Global Industrials Conference in London.
Feb 12	Conference presentation	Neutral	+2.0%	Scheduled talk at Citi Global Industrial Tech and Mobility Conference.
Feb 11	Conference presentation	Neutral	-1.4%	Participation in Barclays Industrial Select Conference with webcast access.

Pattern Detected

Recent PH headlines around dividends and conferences have produced modest single-day moves, with a small positive reaction to the latest dividend increase.

Recent Company History

Over the last few months, PH’s news flow has focused on capital returns and investor outreach. On Apr 23, a quarterly dividend increase to $2.00 per share marked the 70th consecutive fiscal-year raise and saw a roughly flat reaction. Multiple conference appearances in February–March 2026 produced small mixed price moves. Today’s detailed fiscal Q3 results and raised outlook build on that backdrop of steady shareholder returns and ongoing communication with the market.

Market Pulse Summary

This announcement highlights record fiscal Q3 results, with sales of $5.5 billion, organic growth of...

Analysis

This announcement highlights record fiscal Q3 results, with sales of $5.5 billion, organic growth of 6.5%, and adjusted EPS of $8.17, alongside strong cash generation of $2.6 billion year to date. Orders grew 9%, and backlog reached a record $12.5 billion, while management raised full-year EPS guidance to $31.20 on an adjusted basis. Investors may focus on segment margins, order trends across industrial and aerospace, and the durability of these growth and profitability levels over coming quarters.

Key Terms

segment operating margin, organic sales, non-gaap financial measures, amortization of acquired intangibles, +4 more

8 terms

segment operating margin financial

"Segment operating margin was 23.4%, an increase of 20 bps, or 26.7% adjusted"

Segment operating margin measures how much profit a specific part of a company keeps from its sales after paying the costs to run that part, expressed as a percentage. Investors use it like a slice-size indicator to compare which divisions are more efficient at turning revenue into operating profit, helping spot strengths, weaknesses, and where management might focus resources or improvements.

organic sales financial

"Sales increased 11% to a record $5.5 billion; organic sales increased 6.5%"

Organic sales are the change in a company’s revenue that comes from its existing business operations, excluding effects of acquisitions, divestitures, and currency swings. Think of it like measuring how much a garden grows from the plants you already tended, rather than adding new pots; investors use organic sales to judge whether demand and core business performance are genuinely improving or if growth is driven by one‑time deals or accounting shifts.

non-gaap financial measures financial

"This news release contains non-GAAP financial measures."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

amortization of acquired intangibles financial

"Amortization of acquired intangibles | 48 | | 23 | | 71"

Amortization of acquired intangibles is the process of recording the cost of non-physical assets bought in an acquisition—such as patents, trademarks, customer lists or software—as an expense over their estimated useful life. It matters to investors because this recurring charge lowers reported profits even though it typically does not use cash, so it can make a company’s earnings look weaker than its cash flow; think of it like spreading the cost of a large one-time purchase across many months in your household budget.

business realignment charges financial

"Business realignment charges | 3 | | 21 | | 24"

Business realignment charges are one-time costs a company records when it reorganizes its operations, such as closing facilities, laying off staff, consolidating divisions, or writing down assets. Investors watch these charges because they can temporarily reduce reported profits but may signal management is reshaping the business to cut future costs or focus on more profitable activities—think of paying upfront to reorganize a cluttered closet to make it easier to find and use things later.

tax-withholding disposition financial

"were disposed of at $954.43 per share through a tax-withholding disposition"

A tax-withholding disposition is an event or transaction—such as selling or transferring securities, exercising options, or receiving compensation—that triggers a requirement to hold back part of the payment and remit it to tax authorities. It matters to investors because it reduces the cash they receive immediately and can change the timing and amount of taxable income, like a cashier taking a portion of your sale proceeds to pay taxes before you get the rest.

phantom shares financial

"546.85 phantom shares in a Savings Restoration Plan, which are cash-settled"

Phantom shares are a form of employee or executive compensation that mimics the economic value of owning company stock without actually issuing real shares; holders receive cash or equivalent payments tied to the company’s share price or dividends. Think of it like a receipt that pays out if the stock rises — it aligns managers’ interests with shareholders but does not dilute ownership, while creating a future cash obligation that investors should watch as it can affect company cash flow and valuation.

rolling 12-month average technical

"Aerospace Systems comparisons are on rolling 12-month average computations."

A rolling 12-month average is the average of a metric (such as revenue, sales, or expenses) calculated over the most recent 12 months and updated each period by dropping the oldest month and adding the newest one. Like looking through a moving window that smooths out bumps and seasonal swings, it reveals underlying trends and makes short-term noise less distracting, helping investors assess consistent performance and compare results across time.

AI-generated analysis. Not financial advice.

Record Sales of $5.5 Billion Drive Record Cash Flow and Adjusted EPS; Orders +9%

CLEVELAND, April 30, 2026 (GLOBE NEWSWIRE) -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the quarter ended March 31, 2026, that included the following highlights (compared with the prior year period):

Fiscal 2026 Third Quarter Highlights:

• Sales increased 11% to a record $5.5 billion; organic sales increased 6.5%
• Segment operating margin was 23.4%, an increase of 20 bps, or 26.7% adjusted, an increase of 40 bps
• Net income was $0.9 billion, a decrease of 6% compared with the third quarter of fiscal 2025 which included a one-time discrete tax benefit of $180 million
• Adjusted net income increased 16% to $1.0 billion
• EPS were $7.06, a decrease of 4% compared with the third quarter of fiscal 2025 which included a one-time discrete tax benefit of $1.37
• Adjusted EPS increased 18% to a record $8.17
• Year-to-date cash flow from operations was a record $2.6 billion, or 16.7% of sales
• Repurchased $275 million of shares in the quarter
• Company increases outlook for sales and EPS
  
  

“Our global team delivered another quarter of record performance,” said Jenny Parmentier, Chairman and Chief Executive Officer. “In the third quarter, we reported record sales, adjusted segment operating income and margin, adjusted earnings per share and year-to-date operating cash flow. These results reflect the strength of our focused portfolio and our ability to use the tools in The Win Strategy™ to best serve the needs of our customers. With strong orders and record backlog, we are raising our outlook and now expect mid-teens adjusted EPS growth for the year. Our focus on being great generators and deployers of cash is underscored by our recent decision to raise our quarterly cash dividend by 11%. This extends our track record of increasing our annual dividend payout, which now stands at 70 consecutive fiscal years.”

This news release contains non-GAAP financial measures. Reconciliations of adjusted numbers and certain non-GAAP financial measures are included in the financial tables of this press release.

Outlook

Guidance for the fiscal year ending June 30, 2026 has been updated. The company expects:

• Reported sales growth of 7%.
• Organic sales growth of 5.5%; acquisitions of 1%, divestitures of (1%), and currency of 1.5%.
• Segment operating margin of 23.9%, or 27.2% on an adjusted basis.
• EPS of $27.10, or $31.20 on an adjusted basis.
  
  

Segment Results

Diversified Industrial Segment

North America Businesses
$ in mm	FY26 Q3				FY25 Q3				Change			Organic Growth
Sales	$	2,141			$	2,031			5.4	%		2.8	%
Segment Operating Income	$	484			$	467			3.6	%
Segment Operating Margin		22.6	%			23.0	%		-40 bps
Adjusted Segment Operating Income	$	541			$	513			5.5	%
Adjusted Segment Operating Margin		25.3	%			25.2	%		10 bps

• Record adjusted segment operating margin
• Organic growth of 2.8% driven by in-plant & industrial, off-highway and energy
• Order rates remain strong at 7%
  
  

International Businesses
$ in mm	FY26 Q3				FY25 Q3				Change			Organic Growth
Sales	$	1,531			$	1,358			12.7	%		3.3	%
Segment Operating Income	$	341			$	312			9.3	%
Segment Operating Margin		22.3	%			23.0	%		-70 bps
Adjusted Segment Operating Income	$	387			$	340			13.8	%
Adjusted Segment Operating Margin		25.3	%			25.1	%		20 bps

• Record sales led by Asia with 9.6% organic growth
• Record adjusted segment operating margin
• Order rates at 6% driven by long-cycle electronics and defense bookings
  
  

Aerospace Systems Segment

$ in mm	FY26 Q3				FY25 Q3				Change			Organic Growth
Sales	$	1,814			$	1,571			15.5	%		14.2	%
Segment Operating Income	$	457			$	373			22.5	%
Segment Operating Margin		25.2	%			23.7	%		150  bps
Adjusted Segment Operating Income	$	536			$	451			18.8	%
Adjusted Segment Operating Margin		29.5	%			28.7	%		80 bps

• Record sales on 22% commercial OEM growth and 14% aftermarket growth
• Record adjusted segment operating margin
• Order rates at 14%, with double-digit growth across both OEM and aftermarket
  
  

Order Rates

	FY26 Q3
Parker	+9	%
Diversified Industrial Segment - North America Businesses	+7	%
Diversified Industrial Segment - International Businesses	+6	%
Aerospace Systems Segment	+14	%

• Order rates remain strong at 9% with all reported businesses generating positive growth
• Backlog increased to a record $12.5 billion, with increases in both Diversified Industrial and Aerospace Systems Segments
  
  

About Parker Hannifin
Parker Hannifin is a Fortune 250 global leader in motion and control technologies. For more than a century the company has been enabling engineering breakthroughs that lead to a better tomorrow. Learn more at www.parker.com or @parkerhannifin.

Contacts:
Media:	Financial Analysts:
Aidan Gormley	Jeff Miller
216-896-3258	216-896-2708
aidan.gormley@parker.com	jeffrey.miller@parker.com

Notice of Webcast
Parker Hannifin's conference call and slide presentation to discuss its fiscal 2026 third quarter results are available to all interested parties via live webcast today at 11:00 a.m. ET, at investors.parker.com. A replay of the webcast will be available on the site approximately one hour after the completion of the call and will remain available for one year. To register for e-mail notification of future events please visit investors.parker.com.

Note on Orders The company reported orders for the quarter ending March 31, 2026, compared with the same quarter a year ago. All comparisons are at constant currency exchange rates, with the prior year quarter restated to the current-year rates, and exclude divestitures. Diversified Industrial comparisons are on 3-month average computations and Aerospace Systems comparisons are on rolling 12-month average computations.

Note on Non-GAAP Financial Measures
This press release contains references to non-GAAP financial information including (a) adjusted net income; (b) adjusted earnings per share; (c) adjusted segment operating margin for Parker and by segment; (d) adjusted segment operating income for Parker and by segment; and (e) organic sales growth. These measures are presented to allow investors and the company to meaningfully evaluate changes in net income, earnings per share and segment operating margins on a comparable basis from period to period. Although these measures are not measures of performance calculated in accordance with GAAP, we believe that they are useful to an investor in evaluating the results of this quarter versus the prior period. Comparable descriptions of record adjusted results in this release refer only to the period from the first quarter of FY2011 to the periods presented in this release. This period coincides with recast historical financial results provided in association with our FY2014 change in segment reporting. A reconciliation of non-GAAP measures is included in the financial tables of this press release.

Forward-Looking Statements
Forward-looking statements contained in this and other written and oral reports are made based on known events and circumstances at the time of release, and as such, are subject in the future to unforeseen uncertainties and risks. Often but not always, these statements may be identified from the use of forward-looking terminology such as “anticipates,” “believes,” “may,” “should,” “could,” “expects,” “targets,” “is likely,” “will,” or the negative of these terms and similar expressions, and may also include statements regarding future performance, orders, earnings projections, events or developments. Parker cautions readers not to place undue reliance on these statements. It is possible that the future performance may differ materially from expectations, including those based on past performance.

Among other factors that may affect future performance are: changes in business relationships with and orders by or from major customers, suppliers or distributors, including delays or cancellations in shipments; disputes regarding contract terms, changes in contract costs and revenue estimates for new development programs; changes in product mix; ability to identify acceptable strategic acquisition targets; uncertainties surrounding timing, successful completion or integration of acquisitions and similar transactions, including the pending acquisition of Filtration Group Corporation and the integration of Curtis Instruments, Inc.; ability to successfully divest businesses planned for divestiture and realize the anticipated benefits of such divestitures; the determination and ability to successfully undertake business realignment activities and the expected costs, including cost savings, thereof; ability to implement successfully business and operating initiatives, including the timing, price and execution of share repurchases and other capital initiatives; availability, cost increases of or other limitations on our access to raw materials, component products and/or commodities if associated costs cannot be recovered in product pricing; ability to manage costs related to insurance and employee retirement and health care benefits; legal and regulatory developments and other government actions, including related to environmental protection, and associated compliance costs; supply chain and labor disruptions, including as a result of tariffs and labor shortages; threats associated with international conflicts, including geopolitical tensions in the Middle East, and cybersecurity risks and risks associated with protecting our intellectual property; uncertainties surrounding the ultimate resolution of outstanding legal proceedings, including the outcome of any appeals; effects on market conditions, including sales and pricing, resulting from global reactions to U.S. trade policies; manufacturing activity, air travel trends, currency exchange rates, difficulties entering new markets and economic conditions such as inflation, deflation, interest rates and credit availability; inability to obtain, or meet conditions imposed for, required governmental and regulatory approvals; changes in the tax laws in the United States and foreign jurisdictions and judicial or regulatory interpretations thereof; and large scale disasters, such as floods, earthquakes, hurricanes, industrial accidents and pandemics. Readers should also consider forward-looking statements in light of risk factors discussed in Parker’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025 and other periodic filings made with the SEC.

CONSOLIDATED STATEMENTS OF INCOME
		Three Months Ended								Nine Months Ended
(Unaudited)		March 31,								March 31,
(In millions, except per share amounts)		2026				2025				2026				2025
Net sales		$	5,486			$	4,960			$	15,744			$	14,607
Cost of sales			3,469				3,130				9,889				9,250
Selling, general and administrative expenses			884				785				2,594				2,416
Interest expense			99				96				306				310
Other expense (income), net			(85	)			(46	)			(268	)			(405	)
Income before income taxes			1,119				995				3,223				3,036
Income taxes			215				33				666				427
Net income			904				962				2,557				2,609
Less:  Noncontrolling interests			—				1				—				1
Net income attributable to common shareholders		$	904			$	961			$	2,557			$	2,608
Earnings per share attributable to common shareholders:
Basic		$	7.16			$	7.48			$	20.24			$	20.28
Diluted		$	7.06			$	7.37			$	19.95			$	19.97
Weighted average shares outstanding:
Basic			126.2				128.4				126.3				128.6
Diluted			128.0				130.3				128.2				130.6
Cash dividends per common share		$	1.80			$	1.63			$	5.40			$	4.89

BUSINESS SEGMENT INFORMATION
		Three Months Ended						Nine Months Ended
(Unaudited)		March 31,						March 31,
(Dollars in millions)			2026			2025			2026			2025
Net sales
Diversified Industrial		$	3,672		$	3,389		$	10,583		$	10,098
Aerospace Systems			1,814			1,571			5,161			4,509
Total net sales		$	5,486		$	4,960		$	15,744		$	14,607
Segment operating income
Diversified Industrial		$	825		$	779		$	2,438		$	2,273
Aerospace Systems			457			373			1,311			1,034
Total segment operating income			1,282			1,152			3,749			3,307
Corporate general and administrative expenses			53			44			155			149
Income before interest expense and other expense (income), net			1,229			1,108			3,594			3,158
Interest expense			99			96			306			310
Other expense (income), net			11			17			65			(188	)
Income before income taxes		$	1,119		$	995		$	3,223		$	3,036

SUPPLEMENTAL FINANCIAL INFORMATION AND NON-GAAP RECONCILIATIONS
ADJUSTED SEGMENT OPERATING INCOME AND ORGANIC SALES GROWTH RECONCILIATION
		Three Months Ended March 31, 2026																	Three Months Ended March 31, 2025
		Diversified Industrial Segment									Aerospace Systems Segment								Diversified Industrial Segment									Aerospace Systems Segment
(Unaudited) (Dollars in millions)		North America			Int'l			Total						Total					North America			Int'l			Total						Total
Net sales		$	2,141		$	1,531		$	3,672		$	1,814		$	5,486				$	2,031		$	1,358		$	3,389		$	1,571		$	4,960
Segment operating income		$	484		$	341		$	825		$	457		$	1,282				$	467		$	312		$	779		$	373		$	1,152
Adjustments:
Amortization of acquired intangibles			48			23			71			77			148					40			21			61			75			136
Business realignment charges			3			21			24			1			25					4			6			10			—			10
Integration costs to achieve			5			—			5			1			6					2			1			3			3			6
Acquisition-related expenses			1			2			3			—			3					—			—			—			—			—
Adjusted segment operating income		$	541		$	387		$	928		$	536		$	1,464				$	513		$	340		$	853		$	451		$	1,304
Segment operating margin			22.6	%		22.3	%		22.5	%		25.2	%		23.4	%				23.0	%		23.0	%		23.0	%		23.7	%		23.2	%
Adjusted segment operating margin			25.3	%		25.3	%		25.3	%		29.5	%		26.7	%				25.2	%		25.1	%		25.2	%		28.7	%		26.3	%
Reported sales growth			5.4	%		12.7	%		8.4	%		15.5	%		10.6	%
Currency			0.6	%		6.7	%		3.2	%		1.3	%		2.6	%
Acquisitions			2.0	%		2.7	%		2.2	%		—	%		1.5	%
Organic sales growth			2.8	%		3.3	%		3.0	%		14.2	%		6.5	%

		Nine Months Ended March 31, 2026																	Nine Months Ended March 31, 2025
		Diversified Industrial Segment									Aerospace Systems Segment								Diversified Industrial Segment									Aerospace Systems Segment
(Unaudited) (Dollars in millions)		North America			Int'l			Total						Total					North America			Int'l			Total						Total
Net sales		$	6,171		$	4,412		$	10,583		$	5,161		$	15,744				$	6,059		$	4,039		$	10,098		$	4,509		$	14,607
Segment operating income		$	1,435		$	1,003		$	2,438		$	1,311		$	3,749				$	1,378		$	895		$	2,273		$	1,034		$	3,307
Adjustments:
Amortization of acquired intangibles			139			69			208			228			436					124			65			189			225			414
Business realignment charges			7			44			51			2			53					13			26			39			—			39
Integration costs to achieve			10			1			11			2			13					3			1			4			15			19
Acquisition-related expenses			6			5			11			—			11					—			—			—			—			—
Adjusted segment operating income		$	1,597		$	1,122		$	2,719		$	1,543		$	4,262				$	1,518		$	987		$	2,505		$	1,274		$	3,779
Segment operating margin			23.3	%		22.7	%		23.0	%		25.4	%		23.8	%				22.7	%		22.2	%		22.5	%		22.9	%		22.6	%
Adjusted segment operating margin			25.9	%		25.4	%		25.7	%		29.9	%		27.1	%				25.0	%		24.4	%		24.8	%		28.3	%		25.9	%
Reported sales growth			1.8	%		9.2	%		4.8	%		14.5	%		7.8	%
Currency			0.3	%		4.4	%		1.9	%		1.0	%		1.7	%
Divestitures			(2.4	)%		—	%		(1.4	)%		—	%		(1.0	)%
Acquisitions			1.4	%		1.8	%		1.6	%		—	%		1.1	%
Organic sales growth			2.5	%		3.0	%		2.7	%		13.5	%		6.0	%

DIVERSIFIED INDUSTRIAL INTERNATIONAL BUSINESSES - ORGANIC SALES GROWTH SUPPLEMENT
		Three Months Ended March 31, 2026									Nine Months Ended March 31, 2026
(Unaudited)		Europe		Asia Pacific		Latin America		Total			Europe		Asia Pacific		Latin America		Total
Reported sales growth		11.9	%	15.9	%	(1.4	)%	12.7	%		8.6	%	11.5	%	(0.1	)%	9.2	%
Currency		9.7	%	2.5	%	6.1	%	6.7	%		7.3	%	0.7	%	3.4	%	4.4	%
Acquisitions		2.1	%	3.8	%	—	%	2.7	%		1.4	%	2.7	%	—	%	1.8	%
Organic sales growth		0.1	%	9.6	%	(7.5	)%	3.3	%		(0.1	)%	8.1	%	(3.5	)%	3.0	%

ADJUSTED NET INCOME1 AND ADJUSTED DILUTED EARNINGS PER SHARE RECONCILIATION
		Three Months Ended March 31,														Nine Months Ended March 31,
(Unaudited)		2026							2025							2026							2025
(Dollars in millions, except per share amounts)		Net Income1			Diluted EPS				Net Income1			Diluted EPS				Net Income1			Diluted EPS				Net Income1			Diluted EPS
As reported		$	904		$	7.06			$	961		$	7.37			$	2,557		$	19.95			$	2,608		$	19.97
Adjustments:
Amortization of acquired intangibles			148			1.16				136			1.04				436			3.40				414			3.17
Business realignment charges			25			0.19				9			0.08				53			0.41				40			0.31
Integration costs to achieve			6			0.05				6			0.04				13			0.10				19			0.14
Gain on sale of building			—			—				—			—				—			—				(10	)		(0.08	)
Gain on divestitures			—			—				—			—				—			—				(250	)		(1.91	)
Acquisition-related expenses2			6			0.04				—			—				34			0.26				—			—
Insurance-related charges (recoveries)			—			—				8			0.06				(20	)		(0.15	)			8			0.06
Tax effect of adjustments3			(43	)		(0.33	)			(36	)		(0.28	)			(120	)		(0.92	)			(82	)		(0.61	)
Discrete tax benefits4			—			—				(180	)		(1.37	)			—			—				(180	)		(1.37	)
As adjusted		$	1,046		$	8.17			$	904		$	6.94			$	2,953		$	23.05			$	2,567		$	19.68
1Represents net income attributable to common shareholders.
2Acquisition-related expenses include transaction costs and charges related to the fair value step up of acquired inventory.
3This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment.
4 Fiscal year 2025 relates to a release of a tax valuation allowance.

CONSOLIDATED BALANCE SHEETS
(Unaudited)		March 31,			June 30,
(Dollars in millions)			2026			2025
Assets
Current assets:
Cash and cash equivalents		$	476		$	467
Trade accounts receivable, net			3,161			2,910
Non-trade and notes receivable			307			318
Inventories			3,179			2,839
Prepaid expenses			292			263
Other current assets			193			153
Total current assets			7,608			6,950
Property, plant and equipment, net			2,959			2,937
Deferred income taxes			267			270
Other long-term assets			1,324			1,269
Intangible assets, net			7,425			7,374
Goodwill			11,096			10,694
Total assets		$	30,679		$	29,494
Liabilities and equity
Current liabilities:
Notes payable and long-term debt payable within one year		$	2,813		$	1,791
Accounts payable, trade			2,296			2,126
Accrued payrolls and other compensation			560			587
Accrued domestic and foreign taxes			233			382
Other current liabilities			835			933
Total current liabilities			6,737			5,819
Long-term debt			6,769			7,494
Pensions and other postretirement benefits			233			267
Deferred income taxes			1,606			1,490
Other long-term liabilities			717			733
Shareholders' equity			14,609			13,682
Noncontrolling interests			8			9
Total liabilities and equity		$	30,679		$	29,494

CONSOLIDATED STATEMENTS OF CASH FLOWS
		Nine Months Ended
(Unaudited)		March 31,
(Dollars in millions)			2026				2025
Cash flows from operating activities:
Net income		$	2,557			$	2,609
Depreciation			264				263
Amortization			436				414
Stock-based compensation expense			145				130
Gain on sale of businesses			(1	)			(253	)
Net change in receivables, inventories and trade payables			(301	)			(102	)
Net change in other assets and liabilities			(428	)			(515	)
Other, net			(44	)			(237	)
Net cash provided by operating activities			2,628				2,309
Cash flows from investing activities:
Acquisitions, net of cash acquired			(1,014	)			—
Capital expenditures			(286	)			(304	)
Proceeds from sale of property, plant and equipment			37				32
Proceeds from sale of businesses			1				623
Other, net			23				(6	)
Net cash (used in) provided by investing activities			(1,239	)			345
Cash flows from financing activities:
Payments for common shares			(1,007	)			(860	)
Net proceeds from (payments for) debt			321				(1,194	)
Dividends paid			(683	)			(630	)
Other, net			(1	)			3
Net cash used in financing activities			(1,370	)			(2,681	)
Effect of exchange rate changes on cash			(10	)			14
Net increase (decrease) in cash and cash equivalents			9				(13	)
Cash and cash equivalents at beginning of year			467				422
Cash and cash equivalents at end of period		$	476			$	409

RECONCILIATION OF FORECASTED REPORTED SALES GROWTH TO FORECASTED ORGANIC SALES GROWTH
(Unaudited)
(Amounts in percentages)		Fiscal Year 2026
Forecasted reported sales growth		~7%
Adjustments:
Currency		~(1.5%)
Acquisitions		~(1%)
Divestitures		~1%
Forecasted organic sales growth		~5.5%
RECONCILIATION OF FORECASTED SEGMENT OPERATING MARGIN TO ADJUSTED FORECASTED SEGMENT OPERATING MARGIN
(Unaudited)
(Amounts in percentages)		Fiscal Year 2026
Forecasted segment operating margin		~23.9%
Adjustments:
Business realignment charges		~0.3%
Amortization of acquired intangibles		~2.8%
Integration costs to achieve		~0.1%
Acquisition-related expenses		~0.1%
Adjusted forecasted segment operating margin		~27.2%

RECONCILIATION OF FORECASTED EARNINGS PER DILUTED SHARE TO ADJUSTED FORECASTED EARNINGS PER DILUTED SHARE
(Unaudited)
(Amounts in dollars)		Fiscal Year 2026
Forecasted earnings per diluted share		~$27.10
Adjustments:
Business realignment charges		0.53
Amortization of acquired intangibles		4.56
Acquisition-related expenses		0.26
Integration costs to achieve		0.13
Insurance-related charges (recoveries)		(0.16)
Tax effect of adjustments1		(1.22)
Adjusted forecasted earnings per diluted share		~$31.20
1This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment.
Note: Totals may not foot due to rounding

FAQ

What were Parker (PH) fiscal 2026 Q3 sales and order rates reported on April 30, 2026?

Parker reported Q3 net sales of $5.5 billion and overall order rates of +9%. According to the company, organic sales rose 6.5% and backlog increased to $12.5 billion, with all reported businesses showing positive order growth.

How did Parker (PH) report adjusted EPS and GAAP EPS for fiscal 2026 Q3?

Adjusted EPS was a record $8.17 (up 18%), while GAAP diluted EPS was $7.06 (down 4%). According to the company, the GAAP decline reflects a prior-period discrete tax benefit in fiscal 2025.

What guidance did Parker (PH) update for the fiscal year ending June 30, 2026?

Parker raised its outlook to expect reported sales growth of 7% and adjusted EPS of $31.20. According to the company, organic sales are expected around 5.5% with segment adjusted margin near 27.2%.

How much cash flow and share repurchases did Parker (PH) report in Q3 fiscal 2026?

Year-to-date operating cash flow was a record $2.6 billion, and the company repurchased $275 million of shares in the quarter. According to the company, these actions support dividend increases and capital deployment priorities.

Which Parker (PH) segments showed the strongest growth in fiscal 2026 Q3?

Aerospace Systems led with 15.5% sales growth and 14.2% organic growth; Diversified Industrial total sales rose 8.4%. According to the company, Aerospace saw strong commercial OEM and aftermarket gains.